Mohawk to purchase Pergo

Mohawk Industries has agreed to purchase Pergo, one of the original manufacturers of laminate flooring, for $150 million in cash.Pergo's sales in 2011 were approximately $320 million in the United States and Europe, and the deal would include two production facilities in the United States and two in Sweden.

In a prepared statement, Mohawk chairman and CEO Jeffrey Lorberbaum said: "This acquisition complements our specialty distribution network with Pergo's strength in the U.S. DIY channel. In addition, Pergo leverages our geographic position and provides opportunities to enhance Unilin's patent portfolio. The combination of the entities offers significant opportunities to optimize the assets of both companies while enhancing the design and product performance of both brands."

Based in Calhoun, Ga., Mohawk is a leading supplier of carpet, ceramic tile, laminate, wood, stone, vinyl and rugs. The company serves both commercial and residential markets.